Month: August 2020

Important Things To Know About Trading And NASDAQADP

trading software

Trading is relatively easy to understand and fundamentally it is simply buying and selling things. There is always a buyer and seller of the good. It means buying a particular product when its price is low and selling it when it prices in the market increases.

Types of trading

Four types of trading are divided based on the period between buying and selling trades.  These include-

  • Intraday trading- This is the first type of trading in which the trades are kept for one day. The trader buys the trade at a lower rate and sells it in one day. The time duration between buying and selling of trade is one day.
  • Swing trading- In this type of trading, the trade is kept with the trader for 10 days. The trader first buys the share and then sell it when it’s price increases within 10 days. The duration between the buying and selling of trade or share is 10 days.
  • Positional trading- In this type of trading, the time gap between the date of buying of trade and selling of trade is 100 days. The traders buy the share at a low price and sell it after 100 days when the price in the market increases.
  • Investing- in investing, the shares are traded like in NASDAQ: ADP at for more numbers or days. Investing in a broader sense is similar to trading but the investment is made for many years whereas trading maybe for days, weeks, months, or years.

Advantages of trading

There are many advantages of trading stocks which includes-

  • It is easy to buy and sell trades- This is the first advantage of trading in stocks. You don’t need to go anywhere to earn profits rather you can easily buy and sell trades online.
  • Traders get higher interest rate- When you are trading, you tend to get more returns as compared to other investment types like in gold, bonds, real estate, mutual funds, etc.
  • You get bonuses when the company makes a profit- When you trade with a company you can get dividends and bonuses immediately when the company makes a profit.

Disadvantages Of trading

The disadvantages of trading in stocks include-

  • It is unpredictable to guess the profit or loss- In trading, you can predict whether the company will make profit or loss.
  • It is a long process- Trading may be short term or long term but people mostly prefer long term because it gives more profit. But the disadvantage is that you have to wait more time to get the profit.

The main aim of trading is to earn a profit. As in the stock market, you buy shares of a company at a low price and sell them when the price increases. Trading is a part of stock market. You can buy the stock share at trading software.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

PPP Loans May not the Goldmine You Think: What Banks Must Remember

merchant loan

The Paycheck protection program is one of the most popular loan programs under the CARES Act passed by congress in the early stages of Coronavirus pandemic.

PPP loans critical role was to help small business retain workers even amid a global health crisis. In essence, 75 percent was dedicated to payroll, and the remaining portion could cover utilities or any other expenses.

The program targeted a variety of enterprises from the self-employed to nonprofits and so on. So far, a whopping $669 billion has been released. The Small Business Administration is spearheading the operation, but business can get access through various banks dedicated to disbursing PPP loans.

However, PPP loans are not as perfect as they sound; they were rolled out with haste and rules and regulations keep changing.

The Good

It’s difficult to deny the importance of a large relief funding package during tough economic times. Both banks and business involved with PPP loans have a chance to thrive.

And for the cherry on top, it has a 5 percent origination fee, which may offer an edge. It’s also the perfect chance for financial firms to onboard new clients for future business.

Nevertheless, even the best motives can be plagued with hidden challenges. PPP features more than its share, and banks must tread with caution to avoid problems.

As the forgiveness phase starts in August, banks must be ready to respond to all questions and gather all the documents that matter.

Why Banks Must Tread Carefully

Banks must proceed with caution keeping in mind the SBA’s head of scrutiny has mentioned that over 40 percent of the loans disbursed were “unsupported or inappropriate loan approvals.”

Next, the US maintains an annual average of $30 billion in loans. This time, however, it has already given out a staggering $521 billion in just four months.

Again, these loans aren’t as traditional as they seem. In a normal situation, underwriting procedures involve checking creditworthiness by tracking credit history.

With PPP loans, however, a creditworthy company may suffer repayment for reasons outside bank practices like poor record keeping. In the meantime, a firm with poor credit may qualify as long as they meet PPP underwriting standards.

Such an arrangement strips the banking sector of its dignity— as they intentionally or unintentionally stray from traditional best practices.

And lastly, the government has not disbursed any finances yet. Banks have been funding from their reservoirs. That may mean trouble and liability for a bank in the event acceptance or leniency is denied.

With so many loans already out, even a few defaults could eat into profits gathered from the 5% origination fee.

Final Words

All the above are signs that PPP loans may not be as good as they seem. Financial institutions who never considered these factors may suffer in the future.

Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loan solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.